how can advanced economies run budget deficits for basically forever?

Question

It seems that most if not all advanced economies (US, Japan, UK to name a few) have been running budget deficits since basically the last 20 years. I understand that current debts lose value over time because of inflation and economies grow, but how can they do this for basically ever? I can’t wrap my head around the maths that makes this possible, and the markets don’t seem all that worried

In: 316

Answer 1

Economics Explained on YouTube did a great video about this recently. I’d recommend checking that out. I think it was ‘What everybody gets wrong about global debt’.